Thiruvananthapuram/New Delhi | BJP state president Rajeev Chandrasekhar on Friday said private investment in Vizhinjam port was essential for Kerala, and that the Adani group should have sought the state government's approval before deciding to transfer its shares in the seaport to shipping company MSC.
Chandrasekhar, the BJP MLA from Nemom Assembly constituency, alleged that Kerala’s financial situation had been ruined by the last 10 years of CPI(M) rule and contended that private investment was necessary if the state’s economic condition was to improve.
He said that Chief Minister V D Satheesan should release a white paper on the benefits of the share transfer for the state and its people.
The BJP MLA said, “The investment will not only strengthen the state’s economy, but will also create job opportunities for the youth and boost the growth and development of Kerala.”
“Therefore, we should welcome private investment in Vizhinjam port. That is our view,” he told reporters in Delhi.
He was referring to the recent announcement by Adani Ports and Special Economic Zone that it would transfer 49 per cent of its shares in Vizhinjam port to the Switzerland-based shipping company Mediterranean Shipping Company.
Satheesan has claimed that the announcement was made without informing the state government or obtaining its approval for the transaction.
Chandrasekhar said the Adani group should have taken the state government’s approval and added that the company was in the process of obtaining it.
At the same time, he said that since Satheesan emphasises transparency and the port is a public-private partnership project, the CM needs to release a white paper detailing how the share transfer would benefit the state and its people in terms of jobs, revenue and economic growth.
He said that such a white paper should also mention when the state would start receiving revenue from the port and how much it was expected to receive.
“As per the concession agreement, the state government will get revenue from the port 15 years after it becomes operational. But we need that revenue now in view of Kerala’s poor financial position,” he contended.
He told reporters that the port became a reality because of the support of the Narendra Modi government and that it was central to the future of Kerala’s economy, jobs, investment and development.
APSEZ had on Tuesday announced that MSC, the world’s largest shipping and logistics group, would acquire a 49 per cent stake in Adani Vizhinjam Port Private Limited for about USD 1.4 billion.
